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Audited Financial Results And Cash Dividend Declaration For The Year Ended 30 June 2024
Texton Property Fund Limited
Incorporated in the Republic of South Africa
Registration number 2005/019302/06
A REIT, listed on the JSE Limited
JSE share code : TEX
ISIN : ZAE000190542
("Texton" or "the Company")
Audited Financial Results and Cash Dividend Declaration For The Year Ended 30 June 2024
The macro-environment has been challenging over the period under review. We have witnessed
continuous increases in interest rates and persistent inflation. Nevertheless, Texton has remained
committed to executing its strategy. This includes investing in our properties, sale of non-core assets,
and allocation of capital to offshore assets in developed markets with best-in-class asset management.
Despite the industry challenges, we firmly believe in the potential for value creation and opportunities
within the global real estate market.
Highlights
• Core portfolio vacancy decreased from 15,6% at 30 June 2023 to 12,2% as at 30 June 2024.
The total portfolio vacancy decreased from 25,6% at 30 June 2023 to 13,0% at 30 June 2024
• Distributable income decreased from R99,1 million in FY23 to R79,9 million in FY24, largely
due to the sale of properties during FY23.
• On a like-for-like basis, our net property income in South Africa grew by R14,5 million,
representing an 11.9% increase year on year. This was offset by a decrease of R33 million due
to the sale of properties during the 2023 and 2024 financial years
• Dividend paid increased from R50 million in FY23 year to R60 million in FY24, and the dividend
per share increased by 4,5% to 20,13 cents per share in FY24 from 19,26 cents per share in
FY23.
• An amount of R34,2 million was allocated towards capital expenditure in South Africa. These
investments were directed towards enhancing the properties through capital improvements and
tenant upgrades
• Successfully completed the sale of R71.9 million of non-core assets
• R30.6 million was deployed to our indirect international property investments
Key Financial Results
30 June 2024 30 June 2023 Change %
Property Revenue (R'000) 272 904 298 690 (8,63)
Distributable earnings (R'000) 79 901 99 138 (19,40)
Headline earnings per share (cents) 2,52 16,54 (84,76)
Earnings per share (cents) (4,95) (4,26) 16,20
Net asset value per share (cents) 625,08 619,37 0,92
Dividend per share (cents) 20,13 19,26 4,52
Dividend
The Board of directors is pleased to announce that Texton has declared a final dividend of 20.12758
cents per share for the year-ended 30 June 2024 (30 June 2023:19.26 cents). The total dividend for the
year is 20.12758 cents per share (30 June 2023:19.26 cents).
Assuming dividend withholding tax will be withheld at a rate of 20%, the net dividend amount due to
non-resident shareholders is 16,10206 cents per share.
The dividend is declared from income reserves.
At the date of the announcement, Texton had 330 059 664 ordinary shares in issue.
Salient dates and times 2024
Declaration date Monday, 23 September
Last day to trade cum dividend Tuesday, 08 October
Shares to trade ex-dividend Wednesday, 09 October
Record date Friday, 11 October
Payment Date Monday, 14 October
Notes
• Shares may not be dematerialised or rematerialised between the commencement of trade on
Wednesday, 09 October 2024 and the close of trade on Friday, 11 October 2024, both days
inclusive.
• All times are South African times. The above dates and times are subject to change and any
change will be advised on SENS and in the press.
The Company's tax reference number is: 9353785158
Tax Implications
As the Company has REIT status, shareholders are advised that the dividend meets the requirements
of a "qualifying distribution" for the purposes of section 25BBof the Income Tax Act (Act 58 of 1962), as
amended, ("Income Tax Act"). The dividend on the shares will be deemed to be a dividend, for SA tax
purposes, in terms of section 25BB of the Income Tax Act.
South African tax residents
The dividend received by or accrued to SA tax residents must be included in the gross income of such
shareholders and will not be exempt from income tax (in terms of the exclusion to the general dividend
exception, contained in paragraph (aa) of section 10(1)(k)(i) of the Income Tax Act) because it is a
dividend distributed by a REIT. The dividend is exempt from dividend withholding tax in the hands of
SA tax resident shareholders, provided that the SA resident shareholders provide the following forms
to the Central Securities Depository Participant ("CSDP") or broker in respect of uncertificated shares,
or to the Company, in respect of certificated shares:
• a declaration that the dividend is exempt from dividend tax
• a written undertaking to inform the CSDP, broker or the Company should the circumstances affecting
the exemption change or the beneficial owner ceases to be the beneficial owner,
both in the form prescribed by the Commissioner of the South African Revenue Service. Shareholders
are advised to contact their CSDP, broker or the Company to arrange for the above-mentioned
documents to be submitted prior to payment of the dividend if such documents have not already been
submitted.
Non-resident shareholders
Dividends received by non-resident shareholders will not be taxable as income and instead will be
treated as an ordinary dividend which is exempt from income tax in terms of the general dividend
exemption in section 10(1)(k)(i) of the Income Tax Act. It should be noted that up to 31 December 2013
dividends received by non-residents from a REIT were not subject to dividend withholding tax. Since 1
January 2014, any dividend received by a non-resident from a REIT will be subject to dividend
withholding tax at 20%, unless the rate is reduced in terms of any applicable agreement for the
avoidance of double taxation ("DTA") between SA and the country of residence of the shareholder
concerned. Assuming dividend withholding tax will be withheld at a rate of 20%, the net dividend amount
due to non-resident shareholders is 16,10206 cents per share. A reduced dividend withholding rate in
terms of the applicable DTA may only be relied on if the non-resident shareholder has provided the
following form to their CSDP or broker in respect of uncertificated shares, or to the Company in respect
of certificated shares:
• a declaration that the dividend is subject to a reduced rate as a result of the application of DTA; and
• a written undertaking to inform the CSDP, broker or the Company should the circumstances affecting
the reduced rate change or the beneficial owner ceases to be the beneficial owner
both in the form prescribed by the Commissioner of the South African Revenue Service. Non-resident
shareholders are advised to contact their CSDP, broker or the Company to arrange for the above-
mentioned documents to be submitted prior to payment of the dividend if such documents have not
already been submitted.
Short-form statement
This announcement is the responsibility of the directors and is only a summary of the information
contained in the audited consolidated Annual Financial Statements for the year ended 30 June 2024
("AFS") and does not include full or complete details. Any investment decisions by investors and/or
shareholders should be based on the AFS. The AFS
have been published and can be found on the company's website,
https://www.texton.co.za/reportsandpublications , and can also be viewed on the JSE link,
https://senspdf.jse.co.za/documents/2024/jse/isse/tex/AFS24.pdf .
The AFS have been audited by the Group's auditors, BDO South Africa Incorporated("BDO"), who
expressed an unmodified opinion thereon. Copies of the Annual Financial Statements may also be
requested from the Company's registered office.
The financial highlights in this announcement have been correctly extracted from the AFS. This
announcement does not include the information required pursuant to paragraph 16A(j) of IAS 34 'Interim
Financial Reporting'. The information in this announcement has not been audited and reported on by
Texton's external auditors.
Sandton
23 September 2024
Important Information
Executive directors: JH Rens (Chief Executive Officer), HSP Welleman (Chief Financial officer)
Non-Executive Directors: MA Golding (Non-executive chairman), JR Macey (Lead independent non-
executive), *AJ Hannington, * W van der vent, RA Franco ( Non- executive) *Independent non-
executive
Registered Office: Block D, Vunani Office Park, 151 Katherine, Sandton 2031
Postal address: PO Box 653129, Benmore 2010
Auditors: BDO South Africa Inc
Company secretary: Corpstat Governance Services Proprietary Limited
JSE Equity Sponsor: Investec Bank Limited
Transfer secretaries: Computershare Investor Services Proprietary Limited
Date: 23-09-2024 02:54:00
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